Yes — for 2025 you can deduct a home office if a specific part of your home is used exclusively and regularly for your consulting business and it is your principal place of business. Personal living expenses are normally not deductible, so this is an exception with tests you have to meet.
Why
- As a self-employed single-member LLC owner, your business is a trade or business, so the business-use-of-home exception can apply to you.§ 280A(c)(1)
- The exception works by carving a qualifying part of your home out of the general rule that expenses of a residence are not deductible.§ 280A(a)§ 280A(c)(1)
Conditions
- The space must be used only for the business — a den the family also uses for recreation does not qualify.IRS Pub. 587
- Use must be regular, not occasional or incidental.IRS Pub. 587
- It must be your principal place of business, which includes a space used for administrative or management work when you have no other fixed location for it.§ 280A(c)(1)
- The deduction cannot exceed the income from the business use; anything disallowed carries forward to the next year.§ 280A(c)(5)
What To Keep
- A measurement or floor plan showing the square footage of the office and of the home.IRS Pub. 587
- Evidence of exclusive and regular use: photos, a calendar of client work done there, and where your other work happens.IRS Pub. 587IRS Pub. 587
- If you use actual expenses instead of the simplified method: rent or mortgage interest, utilities, insurance and repair records.
Tax Impact
The simplified method allows $5 per square foot up to 300 square feet, but the deduction depends on the size of your office, which you have not given.
- Square footage of the office (simplified method)
- Actual home expenses and the office's share of the home (actual-expense method)
- Gross income from the business use of the home
What Could Change This Answer
- If any personal use of the space happens, the exclusive-use test fails.
- If you also work from a client's office or a rented desk, whether your home is the principal place of business needs a closer look.
- If the business has little income this year, the deduction is capped and the rest carries forward.
Sources
- Statute (Internal Revenue Code)
Business use of home — exclusive and regular use exception; principal place of business
“Subsection (a) shall not apply to any item to the extent such item is allocable to a portion of the dwelling unit which is exclusively used on a regular basis— (A) as the principal”
Sets the exclusive-and-regular-use test and defines principal place of business.
Official source ↗ - Statute (Internal Revenue Code)
Business use of home — general rule of disallowance
“no deduction otherwise allowable under this chapter shall be allowed with respect to the use of a dwelling unit which is used”
The general rule the home-office deduction is an exception to.
Official source ↗ - IRS guidance (explanatory, not law)
Home office — exclusive use test
“To qualify under the exclusive use test, you must use a specific area of your home only for your trade or business. The area used for business can be a”
Explains what exclusive use means, with the IRS's own example.
Official source ↗ - IRS guidance (explanatory, not law)
Home office — regular use and trade-or-business use tests
“To qualify under the regular use test, you must use a specific area of your home for business on a regular basis. Incidental or”
Explains the regular-use test.
Official source ↗ - Statute (Internal Revenue Code)
Business use of home — deduction limited to income from the business use
“the deductions allowed under this chapter for the taxable year by reason of being attributed to such use shall not exceed the excess of— (A) the”
Limits the deduction to the income from the business use.
Official source ↗ - IRS guidance (explanatory, not law)
Home office — simplified method ($5 per square foot, up to 300 square feet)
“In most cases, you will figure your deduction by multiplying $5, the prescribed rate, by the area of your home used for a qualified business use. The area you use to figure”
The $5-per-square-foot simplified method and its 300-square-foot cap.
Official source ↗